Enviro and Michelin extend strategic partnership letter of intent
Enviro and Michelin have extended their recently signed letter of intent regarding a strategic partnership between Scandinavian Enviro Systems (publ) and the French global tyre manufacturer until October. The original exclusivity agreement built into the initial letter of intent was due to run out on 31 July and would have meant that Enviro couldn’t co-operate with other tyre manufacturers and tyre suppliers until after this date. That too has been extended until the end of October.
Initially the two parties expected that a final agreement would have been reached by the middle 2020, but the negotiations have been delayed at least partly due to the ongoing pandemic.
Enviro and Michelin signed the initial letter of intent in April 2020. In connection with this, Enviro conducted and finalized a directed share issue (private placement) of approximately 32.5 million Swedish krone to Michelin, corresponding to ownership of 20 per cent after the completed issue, which Michelin subscribed for through its wholly owned subsidiary Michelin Ventures SAS. Following the completion of the issue at the end of April, Michelin became the largest shareholder in Enviro.
“Our negotiations are continuing with undiminished strength, but factors including the ongoing pandemic, with the accompanying travel restrictions, have meant that we have been unable to proceed as quickly as we had hoped. Therefore, we have jointly decided to prolong our letter of intent until the end of October this year and our joint assessment is that we will be able to provide new information at the end of October this year at the latest,” said Thomas Sörensson, CEO of Enviro.